The present invention relates generally to methods and apparatuses for transmitting money electronically, and more particularly to a method and apparatus for transmitting money electronically via a third party.
Many electronic cash payment cards and methods have been proposed to transfer value from an individual to a merchant and/or from an individual to another individual. Each of these systems requires a complex series of transactions and verifications to ensure that the overall transaction occurs securely--so much so, that many individuals refuse to employ them. This is often cited as a reason that electronic commerce has not yet reached the levels many expected.
One technique for transferring money electronically is for both sides of the transaction to transfer the money to an intermediary, often termed a trusted entity. Usually, this involves a series of pre-transaction arrangements that must be performed to establish the relationship with the intermediary. Once a party has established a relationship with the intermediary then the party can transmit money electronically between any other party that has similarly established a relationship with the intermediary by using the procedures established by the intermediary. Often, however, establishing these relationships is time consuming and requires the submission of more documentation than many individuals prefer. Furthermore, this requires both parties to use the same intermediary.
The present invention is therefore directed to the problem of developing a method and apparatus for transmitting money electronically that achieves a user's desired level of security, yet enables non-sophisticated users to employ it without requiring the submission of substantial documentation by either party to the transaction.